Q1 Financial Presentation 2014 DOF ASA

Transcription

1 Q1 Financial Presentation 2014

2 Highlights

3 Highlights Q Total Ebitda MNOK 960 and operational EBITDA MNOK 756 (MNOK 606) Lower subsea project activity in 1st quarter compared with previous quarter Weak utilisation on 3 PSVs, 6 AHTS and 3 CSV due to: Skandi Marstein upgrade DP2 and mobilization new contract CNR Int. Skandi Flora class docking and prepare for spot market Skandi Leblon class docking Operational Skandi Møgster & Skandi Saigon upgrade and transit Argentina, Total contract Skandi Ipanema mobilization Petrobras contract incl. Installation ROV Skandi Fluminense mobilization Petrobras contract Skandi Peregrino class docking Brazil Skandi Giant- down time due to maintenance issues Geoholm transit to Brazil, Petrobras contract Skandi Salvador class docking Skandi Skolten maintenance issues Fleet Sale of Skandi Bergen in January, gain on sale MNOK 204 DOF Subsea hired external Jones Act-vessels Chloe Candies and Ross Candies for a period of 1+1 yrs each The newbulding Skandi Urca delivered in April 2014

4 Highlights Q Skandi Seven 2 yrs extention with Subsea 7 firm until March 2017 Project contracts Ross Candies and Chloe Candies in Gulf of Mexico Several subsea contracts in the Asia Pacific and Atlantic region Contract awards Skandi Copacabana, 4 yrs with Petrobras from April Skand Paraty, 4 yrs with Petrobras from delivery in 2015 Geosund, call-off 2014 and 2015 Statoil survey frame agreement Skandi Waveney, 1+2x1yrs with Peterson den Helder Skandi Marstein, 9+9 months contract with CNR International issued a new bond MNOK 700 in January Finance Repayment of DOFSUB04 in April, with a total net cash effect of MNOK 454

5 Overview Group

6 in brief Fleet 70 vessels in operation (PSV: 24, AHTS: 18, Subsea: 28) 7 newbuildings (AHTS: 2 Subsea: 5) Operates 58 ROVs Market value total fleet (100% basis) in operation at NOK 33.5 bn Average age of 8 years Value adjusted fleet age of 5 years Back log Total NOK bn Firm contract : NOK bn Options: NOK bn Global organization Head office in Norway Regional offices in Australia, Singapore, UK, USA, Canada, Angola, Argentina and Brazil Total of employees Share price Subsea employees: Marine personnel: NOK ( ) NAV per share NOK 77

7 Company overview

8 The fleet market segment PSV AHTS Subsea Total fleet No. of vessels /DOF REDERI AS NORSKAN OFFSHORE DOF SUBSEA AS DOF INSTALLER ASA AKER DOF DEEPWATER AS Total fleet Contract coverage 2014* 78 % 93 % 79 % 82 % Contract coverage 2015* 54 % 57 % 47 % 52 % *Not including options

9 Global player Focus Region Norway Brazil US/Canada UK Asia Pacific Angola Marine Crew Total DOF employees

10 Remaining newbuilding program Vessel Yard Delivery Type Contract Financing Skandi Angra Vard Brazil Q AHTS 8 yrs Petrobras Funding secured Skandi Paraty Vard Brazil Q AHTS 4 yrs Petrobras Funding secured Skandi TBN 800 Vard Norway Q CSV 5 yrs Technip Funding secured Skandi TBN Vard 823 Vard Norway 2016 PLSV 8 yrs Petrobras Skandi TBN Vard 824 Vard Norway 2016 PLSV 8 yrs Petrobras Skandi TBN PLSV1 Vard Brazil 2016 PLSV 8 yrs Petrobras Skandi TBN PLSV2 Vard Brazil 2017 PLSV 8 yrs Petrobras

11 Financials

12 Result Q ALL FIGURES IN NOK MILLION All figures in NOK million Q Q Operating income Operating expenses Net profit/loss from associates and joint ventures Net gain on sale of vessel Operating profit before depreciation- EBITDA Depreciation Operating profit- EBIT Financial income Financial costs Net realised currency gain/loss Net profit/loss before unrealised gain/loss long term debt Net unrealised currency gain/loss Net unrealied gain/loss on market instruments Profit/loss before tax Tax Net profit/loss Profit attributable to Non-controlling interest Controlling interest Comments PSV: 88% utilisation rate PSV fleet 1 vessel upgraded and mobilized for new contract Class docking 3 vessels 7 vessels fully or partly in the spot market AHTS: 77% utilisation rate AHTS fleet 2 vessels upgraded and in transit new contracts in Argentina 2 vessels mobilized for new contracts in Brazil Class docking 3 vessels 1 vessel in the spot market Subsea/CSV: 92% utilisation TC vessels 70% utilisation project fleet 1 vessels in transit new contract Class docking 3 vessels

13 P&L Q Segments Amounts ALL FIGURES in NOK IN NOK mill MILLION PSV AHTS Subsea Total Q Q Q Q Q Q Q Q Operating income Operating result befor depreciation (EBITDA) Operating result (EBIT) EBITDA margin 35 % 40 % 44 % 49 % 44 % 24 % 43 % 30 % EBIT margin 23 % 26 % 26 % 33 % 35 % 9 % 33 % 15 % EBITDA Q EBITDA Q % 12 % 18 % 77 % 55 % 27 % PSV AHTS Subsea PSV AHTS Subsea

14 Historical EBITDA excl asset sales Operating revenue EBITDA 40% % 30% MNOK % 20% 15% EBITDA Margin % 10% 500 5% - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating revenue EBITDA EBITDA margin 27 % 32 % 30 % 34 % 0% Non-current assets Current assets Total Assets Equity Non-current debt Current debt Total Equity and Debts

15 Balance Q Amounts ALL FIGURES in NOK million IN NOK MILLION ASSETS Intangible assets Vessel and other tangible assets Newbuildings Financial assets Non-current assets Comments Newbuildings represent instalments paid on 8 vessels under construction, incl. 50% share in 4 vessels Receivables Cash and cash equivalents Current assets Total assets EQUITY AND LIABILITIES Subscribted equity Retained equity Non-controlling equity Equity Provisions for commitments Other non-current liabilities Non-current liabilities Current part of interest bearing debt Other current liabilities Current liabilities New bond issue and repurchase DOF08 Short term interest bearing debt includes DOFSUB08, balloons due in 2015 and normal amortizaion Total equity and liabilities

16 Proportional consolidation - IFRS 11 RESULT MNOK 1 Quarter 2014 Proportional consolidation IFRS 11 impact IFRS 11 Operating income Operating expenses Net profit from associated and joint ventures Net gain on sale of tangible assets Operating profit before depreciation EBITDA Depreciation Operating profit - EBIT Finance income, finance cost and realised gain/loss on currencies Net unrealised gain/loss on currencies and net changes of fair value on financial instruments Net financial costs Profit (loss) before taxes Taxes Profit (loss)

17 Proportional consolidation - IFRS 11 BALANCE Balance MNOK Proportional consolidation IFRS 11 impact IFRS 11 ASSETS Intangible assets Tangible assets Non-current financial assets Total non-current assets Receivables Cash and cash equivalents Total current assets Total assets EQUITY AND LIABILITIES Equity Non-current provisions and commitments Non-current liabilities Current liabilities Total liabilities Total equity and liabilities

18 Cash Flow Q (IFRS 11) ALL FIGURES IN NOK MILLION Q Q Cash from operating activities Net interest paid Taxes paid Net cash from operating activities Payment received on sale of tangible assets Purchase of tangible assets Other changes in investing activities Net cash from investing activities Proceeds from borrowings Prepayment of borrowings Payment from/to non-controlling interests Net cash from financing activities Comments Q1 Net Increased cash from operations MNOK 204 Net change cash from investments MNOK 991 Net change cash from finance activities MNOK Net changes in cash and cash equivaletents Cash and cash equivalents at the start of the period Exchange gain/loss on cash and cash equivalents Cash and cash equivalents at the end of the period

19 Key figures & Financial Compliance in Q Q Q YTD 2013 FINANCIAL RESULT EBITDA margin 43 % 29 % 31 % EBITDA margin excl. net gain of assets 33 % 29 % 31 % EBIT margin 33 % 14 % 19 % Cashflow per share 1) 5,02 1,98 14,60 Profit per share ex. non-controlling interest 2) 1,80-0,48-1,72 Profit per share ex. unrealised loss/gain and taxes 3) 3,18-0,40 5,28 BALANCE ROE 4) 13 % 9 % 9 % ROCE 5) 8 % 6 % 7 % Equity ratio (IFRS 11) 23 % 22 % 21 % Equity ratio (Proportional consolidation) 21 % 21 % 19 % Value adjusted equity 37 % 38 % 36 % Value adjusted equity per share Net interest bearing debt (IFRS 11) Net interest bearing debt (proportional consolidation) No of shares* *) Diluted number of share is the same as number of shares 1. Pre-tax result excl.depreciations and unrealised gain/loss currencies debt and derivatives/average no of shares 2. Net profit excl. non controlling interest/average no of shares 3. Net profit excl.unrealised currency gain/loss on debt, derivaties and taxes/average no of shares 4. Net profit last 4 quarters (excl unrealised currency gain/loss and derivatives on debt)/equity 5. Ebit last 4 quarters/capital employed in compliance with financial covenants per March: Equity ratio = 37% (requirement 30% or 20% if contract coverage >70% Contract coverage 82% Actual free cash: NOK mill (requirement NOK 500 mill)

20 Net interest bearing liabilities ALL FIGURES IN NOK MILLION Proportional consolidation IFRS 11 Bond loan Debt to credit institutions Total non-current interest bearing liabilities Bond loan Debt to credit institutions Utilized credit facilities Total current interest bearing liabilities Total interest bearing liabilities Cash and cash equivalents Net derivatives Non-current receivables - - Total net interest bearing liabilities Newbuilds Net interest bearing liabilities, excluding unemployed capital

21 Debt maturity profile Bank Debt Bond Balloons DOF DOF GROUP COUNTERPARTY EXPOSURE Q After 38% 26% Bond Eca Bank Debt Bond Loan Balloons 36% Bank DOF Subsea E 2015E 2016E 2017E 2018E 2019E After * ECA mainly represent long term funding with BNDES and GIEK

22 Asset coverage Combined market value DOF Group fleet including newbuild is NOK bn (total value 100% NOK 45.1 bn) New-building program to be completed in 2017 (including 50% in 4 PLSV s) Asset-level gearing on the existing fleet is 51%, decreasing to 29% in 2017 Significant gearing reduction forecasted upon completion of the current newbuild program 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Gearing forecast summary 49% 51% 57% 43% Debt 63% 67% 71% 37% 33% 29% * The figures reflects amortization and balloon payments on secured debt drawn as per 31 March 2014 and onwards Equity Total Fleet Market value Vessels & newbuilds MNOK Equipment (subsea) MNOK Total Fleet MNOK Note: Vessel values as of 31 March 2014

23 Contract Coverage

24 PSV Contract coverage PSV A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D NSO SUPPY Skandi Falcon 1 Skandi Marstein Skandi Foula Skandi Rona Skandi Buchan Skandi Sotra Skandi Caledonia Skandi Barra Skandi Texel 1 1 Skandi Mongstad Skandi Flora 1 1 Skandi Gamma Skandi Waveney Skandi Feistein Skandi Kvitsøy Skandi Nova Skandi Marøy Skandi Hugen Skandi Captain Skandi Fjord 1 Skandi Leblon Skandi Flamengo Skandi Yare Skandi Stolmen FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION

25 AHTS Contract coverage AHTS A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D ADD NSO Supply Skandi Stord SPOT Skandi Admiral Skandi M øgster Skandi Vega Skandi Copacabana Skandi Botafogo Skandi Rio Skandi Fluminense Skandi Giant Skandi Ipanema Skandi Amazonas Skandi Iguacu Skandi Urca Skandi Angra Skandi Paraty Skandi Peregrino Skandi Emerald Skandi Saigon Skandi Pacific Skandi Atlantic FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION

26 CSV Contract coverage CSV A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Supply Skandi Olympia Skandi Commander NSO Skandi Chieftain Skandi Hav FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION

27 Subsea Contract coverage Subsea A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D DOF Subsea Skandi Acergy Skandi Achiever Skandi Aker Skandi Arctic Skandi Carla Skandi Constructor Skandi Neptune Skandi Niteroi Skandi Patagonia Skandi Salvador Skandi Santos Skandi Seven Skandi Vitoria Ocean Geograph Geoholm Protector Geosea Skandi Hawk Skandi Hercules Skandi Inspector Skandi Singapore Skandi Skansen Skandi Skolten Geosund Harvey Deep-Sea* Chloe Candies* Ross Candies* 1 1 Normand Reach* Skandi TBN (NB800) Skandi TBN1 (EP t) Skandi TBN2 (EP t) Skandi TBN3 (Hull t) Skandi TBN4 (Hull t) FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION * CHARTERED

28 DOF Subsea

29 DOF Subsea Group In brief Quarterly figures % 35% * According to internal Management reporting NOK million % 25% 20% 15% 19.4 % CAGR Key figures Back-log incl. options Market value of fleet NOK 33 billion NOK 17 billion Q Q Q Q % 5% 0% 27.7 % CAGR Number of shares Operating revenue EBITDA EBITDA margin * According to internal Management reporting Total Per share Book equity NOK 5.7 billion NOK Value adj. equity NOK 8.7 billion NOK Book equity ratio 29.4 % Value adj. equity ratio 39.0 % * According to internal Management reporting 29

30 Key credit metrics Interest Coverage NIBD/EBITDA 2,50 12,00 2,00 10,00 1,50 1,00 8,00 6,00 4,00 0,50 2, Last 4 Qs Last 4 Qs NIBD/Total assets Debt/Total assets 1,00 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0, Last 4 Qs 1,00 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0, Last 4 Qs * According to internal Management reporting DOF Subsea 30

31 DOF Subsea Projects PTSC Lamson FPSO Mooring Installation Location 120km east of Vung Tau, Offshore Vietnam Skandi Hercules, Skandi Singapore, two third party AHTS and a third party Tug & Barge from Q to Q Project Management and Engineering: Engineering and detailed design for all Temporary Equipment, Free Issued Equipment and Installation Aids Phase 1 - Q3 2013: Installation and pre-tensioning of 9 x 1.83m diameter 30m long Anchor pile c/w 500m-750m of 117m/130mm R3 studless mooring chain (pre-tense load of 150Te) Phase 2 - Q2 2014: Tow out and hook up of FPSO PTSC Lamson including installation; Installation of two Mid Water Arches and gravity base, 5 flexible risers, 2 umbilicals and associated saturation diver tie-ins, leak testing and pre-commissioning 31

32 DOF Subsea Projects OMV Emergency FPSO Mooring System Repair Skandi Singapore Q1 12 & 13, Skandi Hercules, Skandi Skansen, Skandi Atlantic, Skandi Emerald Q3 & Q4 13 Initially routine IRM scope including saturation diving in NZ. Emergency FPSO Mooring System Repair, stabilising vessel, Engineering, Project Management and replacement vessel for Galoc EPIC project. Innovation for diverless solution to handle significant loads involved. Developed and built the equipment in time Hercules arrived in New Zealand.

33 DOF Subsea Projects Operating income by segment o o DOF Subsea has built a global project organisation over the last 9 years DOF Subsea has developed the project business gradually o o Increased project activity driving growth Project business going forward Hire more engineers NOK million Gradually increase the complexity of work done (Step by Step) Build a larger project back-log Mix between owned and chartered in vessels Subsea projects Chartering of vessels Total Chartering of vessels Subsea projects Total 0 * According to internal Management reporting 33

34 Outlook Brazil: We expect increased demand for our vessels and services. We expect a substantial increase in day rates compared to old contracts. North Sea: We expect a volatile AHTS market in We expect high utilisation and good rates for PSVs during North Sea summer season DOF Subsea has taken a step-change in customer base and complexity of work done, and we expect a growing market share in this sector going forward. Asia Pacific: We expect a steady demand for all our vessels and services. DOF Subsea has an excellent position with a new fleet and an established, strong project organization. We expect operational Ebitda in Q2 to be better than Q1

35 Thank you Presented by Mons Aase - CEO Hilde Drønen - CFO

36 DISCLAIMER This presentation by designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 15 May This presentation contains forward-looking statements relating to operations of the Group that are based on management s own current expectations, estimates and projections about matters relevant to s future financial performance. Words such as likely, aims, looking forward, potential, anticipates, expects, predicts, plans, targets, believes and estimates and similar expressions are intended to identify forwardlooking statements. References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the Group or the likelihood that the assumptions, estimates or outcomes will be achieved. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only., its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward-looking statements made in this presentation are based on information presently available to management and assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.